Canadian Lawyer

LEGAL REPORT/Mining Law effect on existing shareholders. When the markets do come back you're much more attractive to raise that additional equity or debt financing," says Sandrelli. He points to North American Tungsten Corp. Ltd., a client he worked with a few years ago in completing a CCAA reorganization that saw it restructure its capital and balance sheet and return to full operation. "We were able to obtain a stay of proceedings in CCAA. The company needed that structure to recapitalize the balance sheet, which we did, but also the stay of proceedings allowed them to hold off creditors and send a message to the employees, suppliers, and the market that it wasn't a chaotic situation," says Sandrelli. "Sometimes a filing can create a stabilizing effect where you can get your message out that there is a path of restructuring. The Osgoode February 13 - April 28, 2014 5 Modules over 12 Weeks Osgoode Professional Development Downtown Toronto Conference Centre Developed by mining lawyers and mining executives for those who need a comprehensive understanding of the critical business and legal issues in today's dynamic mining industry. Module 1 – February 13 Introduction to Mining Fundamentals/Stages of Mining Projects/ Diligence and Risk Assessment Module 2 – February 28 Standards of Disclosure/Regulatory Framework Module 3 – March 24 Mining Agreements Module 4 – April 3 Financing Projects/Going Public/Corporate Social Responsibility Module 5 – April 28 Dealing with Indigenous Communities/Human Rights/Anti-Corruption/ Dispute Resolution Program Directors Eden M. Oliver, Partner, Bennett Jones LLP Mark Travers, Executive Vice-President, Legal and Strategic Projects, Vale Canada Limited Registration Fee: $3995 plus HST . WEBCAST AVAILABLE To Register: www.osgoodepd.ca, Or Call: 416.597.9724 or 1.888.923.3394 Or E-mail: opd-registration@osgoode.yorku.ca Osgoode Professional Development, 1 Dundas Street West, Suite 2600, Toronto CLE Priority Service Code: 13-42OR 48 ntitled-1 1 September 2013 www.CANADIAN We did that through a convertible debt structure that ultimately saw the existing shareholders be significantly diluted, but ultimately significant financing came out of the ashes and they carry on to this day." And while the mining industry is familiar with the ups and downs of the market, some say this time things are different. "I think there is a differentiator in the industry between those who think this is cyclical and those who believe it's a more fundamental realignment in the sector," says Sander Grieve, head of the mining practice at Bennett Jones LLP in Toronto. "For the cyclical guys, the incentive is 'we need to weather this and get to whatever it is that changes things.' For others it's a more fundamental look at what they're doing in the business." Grieve says Bennett Jones is working with a number of issuers looking at possibilities including cutting costs and how they engage in reductions in the short term and the longer term. "They're looking at assets and their focus in the market and whether that means certain assets will go." Even though it's been slow for M&A this year, Grieve insists there is life out there. "Across the group, I think we're starting to see a few more deals getting done but I can't say it's a torrent," he adds. "There are smaller deals and more creative things like off-taking arrangements and that sort of thing." While some predict September may show signs of recovery in the mining sector, few are willing to commit to a real forecast. "I don't think we're going to see any real resurrection this year. I probably have conversations five or six times a day with bankers and company executives and it really is a difficult time for them," says Robert Mason, a partner with Norton Rose Fulbright Canada who works with a mix of clients in the mining sector including mid-cap and junior mining companies. "Certainly the juniors are struggling with this," he says. "I would think all mining companies in one way or the other are dealing with this but it's the juniors that are most exposed and have the fewest options." Mason says it forces companies to focus on key projects and make tough L a w ye r m a g . c o m 13-08-22 9:04 AM

• Cover